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eBay TV Ad Marketplace Fizzling April 6, 2007

Posted by David Card in Media.

Hey, I didn’t say it would be easy. Just big. Eventually.

Reuters: A key U.S. cable TV trade group said on Thursday it would withdraw from an online advertising exchange proposed by eBay Inc. (EBAY.O: Quote, Profile, Research), dealing a blow to the Web company’s plans to build a system to sell ad time.

the Journal: Ad executives suggest the CAB decisions could also have bigger ramifications for others, such as Google Inc., that are looking to digitize the media buying and selling process. “Google is going to realize not everyone is rooting for this,” says Greg Smith, chief operating officer of the North American operations of Neo@Ogilvy, an interactive ad agency owned by WPP Group’s Ogilvy & Mather. Google didn’t return calls seeking comment.

NY Times: “By going to this online bidding system that eBay was sharing with us, we’d be taking a step backwards,” said John Muszynski, chief executive of Starcom USA, an agency in the Publicis Groupe that buys ads. “Years ago, you basically bought for the tonnage, you bought slots and you bought for the price,” he said. “We have now integrated the buying process into the marketing process. We’re doing product integrations. We’re doing significant added-value. We’re doing promotions.”

Or maybe nobody — buyer or seller — really wants to get that commoditized that fast.

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